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epeat part (b) assuming Marigold Corp. uses the double-declining-balance method of depreciation. (Credi utomatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Ent mnd enter O for the amounts. Round answers to O decimal places, e.g. 5,275.) Account Titles and Explanation Depreciation Expense Accumulated Depreciation Machinery Debit 4366 Cred

epeat part (b) assuming Marigold Corp. uses the double-declining-balance method of depreciation. (Credi utomatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Ent mnd enter O for the amounts. Round answers to O decimal places, e.g. 5,275.) Account Titles and Explanation Depreciation Expense Accumulated Depreciation Machinery Debit 4366 Cred

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I have a doubt in the last entry amount

Machinery purchased for $55,200 by Marigold Corp. on January 1, 2015, was originally estimated to have an 8-year useful life with a residual value of $4,000. Depreciation has been entered for five years on this basis. In 2020, it is determined that the total estimated useful life (including 2020) should have been 10 years, with a residual value of $4,600 at the end of that time. Assume straight-line depreciation and that Marigold Corp. uses IFRS for financial statement purposes. Your answer is correct. Prepare the entry that is required to correct the prior years' depreciation, if any. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation No Entry No Entry Your answer is correct. D Account Titles and Explanation Depreciation Expense Accumulated Depreciation Machinery eTextbook and Media Debit Prepare the entry to record depreciation for 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts) List of Accounts 0 Debit Credit 3720 0 Credit 3720
Transcribed Image Text:Machinery purchased for $55,200 by Marigold Corp. on January 1, 2015, was originally estimated to have an 8-year useful life with a residual value of $4,000. Depreciation has been entered for five years on this basis. In 2020, it is determined that the total estimated useful life (including 2020) should have been 10 years, with a residual value of $4,600 at the end of that time. Assume straight-line depreciation and that Marigold Corp. uses IFRS for financial statement purposes. Your answer is correct. Prepare the entry that is required to correct the prior years' depreciation, if any. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation No Entry No Entry Your answer is correct. D Account Titles and Explanation Depreciation Expense Accumulated Depreciation Machinery eTextbook and Media Debit Prepare the entry to record depreciation for 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts) List of Accounts 0 Debit Credit 3720 0 Credit 3720
Your answer is correct. Repeat part (b) assuming Marigold Corp. uses ASPE and the machinery is originally estimated to have a physical life of 8.5 years and a salvage value of $0. In 2020, it is determined that the total estimated physical life (including 2020) should have been 11 years, with a salvage value of $100 at the end of that time. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to O decimal places, e.g. 5,275.) Account Titles and Explanation Depreciation Expense Accumulated Depreciation Machinery Thuthank and Media Your answer is partially correct. Account Titles and Explanation Depreciation Expense Accumulated Depreciation - Machinery Repeat part (b) assuming Marigold Corp. uses the double-declining-balance method of depreciation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to 0 decimal places, e.g. 5,275.) eTextbook and Media Debit List of Accounts 3772 Debit Credit 4366 3772 Credit 4366
Transcribed Image Text:Your answer is correct. Repeat part (b) assuming Marigold Corp. uses ASPE and the machinery is originally estimated to have a physical life of 8.5 years and a salvage value of $0. In 2020, it is determined that the total estimated physical life (including 2020) should have been 11 years, with a salvage value of $100 at the end of that time. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to O decimal places, e.g. 5,275.) Account Titles and Explanation Depreciation Expense Accumulated Depreciation Machinery Thuthank and Media Your answer is partially correct. Account Titles and Explanation Depreciation Expense Accumulated Depreciation - Machinery Repeat part (b) assuming Marigold Corp. uses the double-declining-balance method of depreciation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to 0 decimal places, e.g. 5,275.) eTextbook and Media Debit List of Accounts 3772 Debit Credit 4366 3772 Credit 4366
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